Information Services Corp (TSE:ISV), which provides registry services for public records, revealed that it has completed the previously announced acquisition of all major assets in Paragon Inc’s business for around C$70 million through its wholly-owned subsidiary ESC Corporate Services Ltd.
According to the Saskatchewan-based firm, Paragon’s assets now form part of a new division of ESC called Recovery Solutions.
Paragon is a tech-enabled company that facilitates asset recovery on behalf of Canada's major banks. Asset recovery often takes the shape of identification, retrieval and disposition of movable assets like cars, boats, aircraft and other physical assets used as collateral in transactions.
READ: Information Services expands its services segment with the acquisition of Paragon
In a statement, Information Services CEO Jeff Stusek said: “We are extremely pleased to have concluded the acquisition of the assets of Paragon. This transaction is in keeping with our growth strategy, positioning our Services business to remain competitive and continue to gain market share.”
The addition of Paragon’s assets will boost ESC’s current offering and means that it will be able to offer its clients a “complete solution” in the credit life cycle, from “origination to recovery.” The acquisition is consistent with ISC’s long-term strategy of acquiring companies with symbiotic competencies or operations in its space.
ISC has a host of diversified, yet complementary revenue streams through its three business segments: Registry Operations, Services and Technology Solutions.
The Paragon acquisition is tipped to be “highly accretive” on both earnings per share and cash flow basis for ISC as it is a resilient business that performs in both “a recovery, or recession” environment.
For the 12 months ended June 30, 2020, Paragon clocked up revenue of $12.6 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of around $7.1 million.
The management said it will provide more details on the strategic deal on the company’s second-quarter earnings conference call on August 6, at 12:00 pm ET.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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